Royal Dutch Shell 'A' and 'B' Shares difference

pizzagirl

Hi, Royal Dutch Shell 'A' (RDSA) shares and Royal Dutch Shell 'B' (RDSB) shares are both in the FT-SE 100 index. Can you, as a UK resident, buy shares in both? And just what is the difference?

JoeCrystal

Basically, A used to be listed on Amsterdam while B have always been listed in London. Since they are in different countries, A get different tax tratment compared to B. Therefore, explaining the difference in price. Until then, the A and B shares entitle the holder to the same share in the business. Nevertheless, I am not sure you can buy them both since it would not make sense as it meant it subject to two different tax treatment.

If you really want to know, you can check their webpage about this. http://www.shell.com/home/content/investor/share_price/difference_a_b/share_price_difference_a_b.html

ess0two

I work for them UK, and can only buy A shares.

pizzagirl

"A used to be listed on Amsterdam while B have always been listed in London."

If the 'B' shares have always been listed in London then surely it is the 'B' shares that UK residents can buy?

ess0two

pizzagirl wrote: »

"A used to be listed on Amsterdam while B have always been listed in London."

If the 'B' shares have always been listed in London then surely it is the 'B' shares that UK residents can buy?

Yeah wrong way round on my behalf,although resided in UK and worked in europe could buy A,work in UK B only.

sabretoothtigger

You can buy both if you like but I think its B you should be buying. try questor, I think they tipped them and said as much


A has 20% lower dividend because the dutchies nick some where as the B ones give their cut to darling just like all the other shares. Its something like that, I'll tell you on dividend payment day because I accidentally bought both :laugh:

They go ex on 5th aug

ess0two

sabretoothtigger wrote: »

You can buy both if you like but I think its B you should be buying. try questor, I think they tipped them and said as much


A has 20% lower dividend because the dutchies nick some where as the B ones give their cut to darling just like all the other shares. Its something like that, I'll tell you on dividend payment day because I accidentally bought both :laugh:

They go ex on 5th aug

Currently buy B each month,upto a max of £125,dont pay tax on Ni on them,gotta keep them for 5yrs though,or pay tax/ni etc if cashed before.

sabretoothtigger

Well thats ok since they have such a nice dividend and really decent prospects imo especially if you believe secular bear on shares and secular bull on commoditys like some say.

You work for them so get this as part of a employee share scheme I guess?

I havent checked their net debt to profit ratio or other detail on their stability exactly but seems in general one of the better shares to hold


http://forums.moneysavingexpert.com/showpost.html?p=23058473&postcount=236


BP in comparison have just got an operating interest in Iraq

ess0two

More of a way of saving for me.

Jake'sGran

ess0two wrote: »

I work for them UK, and can only buy A shares.

When I worked in the chemical industry Shell were always regarded as the best employer. The company I worked for were good i.e. RTZ and then Rhone Poulenc bought it (everyone called them Ron Plonk). I wish I had shares in either Shell or RTZ.

barak

I recall that after the extraordinary error in 2002 of reporting inflated oil and gas reserves, following which Shell paid compensation to investors who had been misled, the old (UK) Shell Transport & Trading Co and the old (Netherlands) Royal Dutch Petroleum were in 2005 'merged' by a Scheme of Arrangement into a single company - Royal Dutch Shell.

The terms were:
Shell Transport & Trading: each existing share becomes 0.287333066 Royal Dutch Shell B shares
Royal Dutch Petroleum : each existing share becomes 2 Royal Dutch Shell A shares

So most UK investors (like me) will probably have 'B' shares, which - as has been pointed out by others - are more convenient owing to the tax treatment of dividends.